I agree, but…
…that would change the incentives on not amending the suit. As things stand now “judge doubts the claim is valid, or can be amended to be valid” means a large party has no good reason to they to go forward. With a possibility that an “obviously meritless” claim will cost them money it makes sense to try to amend the claim, just in case you can make it “unobviously meritless (or maybe actually have merit)”. It might save money, and if it doesn’t save money it moves the payment out into the future, and that is worth something.
If we can avoid making a fine for obviously meritless claims not result in greater pain for those who were claimed against I’m all for it.



